EMKAY GLOBAL FINANCIAL 2022-23 Annual Report Analysis

Wed, 16 Aug

EMKAY GLOBAL FINANCIAL has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

EMKAY GLOBAL FINANCIAL Income Statement Analysis

• Operating income during the year fell 25.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 75.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.7% in FY23 as against 20.0% in FY22.
• Depreciation charges increased by 21.1% and finance costs increased by 35.6% YoY, respectively.
• Other income grew by 386.5% YoY.
• Net profit for the year declined by 59.9% YoY.
• Net profit margins during the year declined from 12.9% in FY22 to 6.9% in FY23.

EMKAY GLOBAL FINANCIAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,712	2,030	-25.1%
Other income	Rs m	26	125	386.5%
Total Revenues	Rs m	2,738	2,155	-21.3%
Gross profit	Rs m	543	135	-75.1%
Depreciation	Rs m	76	92	21.1%
Interest	Rs m	32	43	35.6%
Profit before tax	Rs m	461	125	-72.8%
Tax	Rs m	112	-15	NA
Profit after tax	Rs m	349	140	-59.9%
Gross profit margin	%	20.0	6.7
Effective tax rate	%	24.3	-11.6
Net profit margin	%	12.9	6.9

5 PM TODAY: Golden Buying Window to Ride India's Potentially Decade-Long $10 Trillion Bull Run...

EMKAY GLOBAL FINANCIAL Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 5 billion as compared to Rs 5 billion in FY22, thereby witnessing an decrease of -5.9%.
• Current assets fell 9% and stood at Rs 6 billion, while fixed assets rose 14% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 7 billion as against Rs 8 billion during FY22, thereby witnessing a fall of 5%.

EMKAY GLOBAL FINANCIAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,918	2,021	5.4
Current Liabilities	Rs m	5,373	5,056	-5.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	7,675	7,262	-5.4
Current assets	Rs m	6,515	5,940	-8.8
Fixed Assets	Rs m	1,160	1,321	13.9
Total Assets	Rs m	7,675	7,262	-5.4

EMKAY GLOBAL FINANCIAL Cash Flow Statement Analysis

• EMKAY GLOBAL FINANCIAL's cash flow from operating activities (CFO) during FY23 stood at Rs -634 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 51 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -69 million, an improvement of 5% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -653 million from the Rs 484 million net cash flows seen during FY22.

EMKAY GLOBAL FINANCIAL Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	597	-634	-
Cash Flow from Investing Activities	Rs m	-40	51	-
Cash Flow from Financing Activities	Rs m	-73	-69	-
Net Cash Flow	Rs m	484	-653	-

Current Valuations for EMKAY GLOBAL FINANCIAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.7, an decline from the EPS of Rs 14.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 76.8, stands at 24.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 9.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	110.1	82.4
TTM Earnings per share	Rs	14.2	5.7
Diluted earnings per share	Rs	14.2	5.7
Price to Cash Flow	x	6.0	9.8
TTM P/E ratio	x	7.4	24.1
Price / Book Value ratio	x	1.3	1.1
Market Cap	Rs m	2,551	2,280
Dividends per share (Unadj.)	Rs	1.3	1.0

Ratio Analysis for EMKAY GLOBAL FINANCIAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY23, from 1.2x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 3.9x during FY23, from 15.6x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 6.9% during FY23, from 18.2% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 8.3% during FY23, from 25.7% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 2.5% during FY23, from 5.0% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.2	1.2
Debtors’ Days	Days	1,195	1,893
Interest coverage	x	15.6	3.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.0	2.5
Return on equity	%	18.2	6.9
Return on capital employed	%	25.7	8.3

To see how EMKAY GLOBAL FINANCIAL has performed over the last 5 years, please visit here.

EMKAY GLOBAL FINANCIAL Share Price Performance

Over the last one year, EMKAY GLOBAL FINANCIAL share price has moved down from Rs 78.4 to Rs 76.8, registering a loss of Rs 1.6 or around 2.0%.

Overall, the S&P BSE SENSEX is up 10.2% over the year.

(To know more, check out historical annual results for EMKAY GLOBAL FINANCIAL and quarterly results for EMKAY GLOBAL FINANCIAL)